Memphis based Fred's, Inc., a chain of 661 discount stores, announced a $66-million acquisition of Reeves-Sain Drug Store, Inc. Shane Reeves and Rick Sain assure customers that nothing will change.
The agreement for the Murfreesboro based pharmacy and multi-faceted medical supplier reportedly includes $53-million in cash and note valued at $13-million. The deal is expected to be made final some time in April.
The purchase includes Reeves-Sain Drugstore here in Murfreesboro, as well as EntrustRX, a specialty pharmacy operation with regional presence. That company operates out of nearby Spring Hill as well as Columbus, Mississippi.
EntrustRX is licensed in all fifty states and dispenses specialty pharmaceuticals that theats complex diseases and conditions. Its main therapy lines include hepatitis C, oncology, growth hormones, multiple sclerosis, and rheumatology.
Customers Confused
In an effort to clarify the issue, the Reeves-Sain FaceBook site says:
A Message to Reeves-Sain Customers and out community . . .
We would like to start off this letter by assuring you that Reeves-Sain is not going anywhere.
Yes, we are pleased to announce that we have signed an agreement for Fred's, Inc. to acquire EntrustRx, our specialty pharmacy operation that is a part of the Reeves-Sain Drug Store's corporate structure.
However, this partnership does not change the name, products, services and culture of the Reeves-Sain Family of Medical Services. We are still serving milkshakes and pimento cheese sandwiches, and you can still come see either of us, Jason, Cindy or any of our other great staff members. While you're here you can pick up your prescriptions and drop off your mail. We're still Reeves-Sain.
Fred's, Inc. saw an opportunity to invest in the growing specialty pharmacy industry through EntrustRx, and Reeves-Sain is excited to partner with Fred's to grow the reach of EntrustRx to have a national presence in the marketplace.
We have always been proud of Reeves-Sain's deep roots in the Murfreesboro and Middle Tennessee communities, and that commitment does not change. We remain the Reeves-Sain Family of Medical Services and we will continue to stay innovative while providing personalized health care services and quality care to our customers and community.
We are the same pharmacy, with the same customer service and the same delicious milkshakes. So come get your prescriptions filled, stop in the Soda Shoppe and take comfort in the fact that we are not going anywhere.
Thank you for being loyal customers over the past 35 years. We are thrilled that there are still many years to come for Reeves-Sain, your neighborhood pharmacy.
Thank you,
Fred's CEO Jerry Shore said, "We are excited to announce the acquisition of EntrustRx, which will further expand our presence in the specialty pharmacy arena - the largest growth area of the pharmacy industry. We welcome the skilled and valued EntrustRx and Reeves-Sain Drug Store employees to the Fred's team and know that they will make great contributions to the future our pharmacy operations."
Shore noted that the EntrustRx acquisition will offer additional advantages to Fred's, including accreditation and access to expanded specialty networks, expertise in different disease states, access to limited-distribution medications, and a model for a scalable retail experience providing clinical services, immunizations, compounding, and hospice medications.
Commenting on the announcement, EntrustRx co-owner Rick Sain said, "We are proud and excited to move our company in a new direction by joining forces with Fred's. Fred's capabilities, resources and experience in pharmacy, along with the potential reach of its retail pharmacy network, were important factors for us as we considered this transaction. Equally important were our shared values regarding the way we interact with and treat our customers and an aligned sense of dedication to the purpose of helping those suffering from chronic disease states and conditions."
Fred's, Inc. was represented in the transaction by Baker, Donelson, Bearman, Caldwell & Berkowitz, P.C., with pharmacy regulatory counsel provided by Bass, Berry & Sims PLC. Reeves-Sain Drug Store, Inc. was represented in the transaction by Adams and Reese LLP.
